Due to the global COVID – 19 pandemic situations, investors and financial institutes are looking for safer and sustainable investment options. Among many options, Cryptocurrencies are providing the safe passages that investors are looking for. There are over 7,000 cryptocurrencies currently available in the market and among them; the two most focused cryptocurrencies are Bitcoin and Ethereum. However, over the last 12 months or so, crypto enthusiasts are turning their focus on EOS and Cardano (ADA) because both these two cryptocurrencies are building momentum and are offering a broad spectrum of financial solutions. So, in this article, we will discuss EOS and Cardano, their pros and cons, differences, etc.
Both EOS and Cardona are among the top 15 cryptocurrencies. Though Cardano had a great 2020 and it has kept the momentum but EOS had an average year and it has been at the resistance level of $3.08. Now, Cardona is the seventh-largest crypto in terms of market cap and it has an over 310% gain thanks to Shelley’s main net launch announcement. On the other hand, EOS has dropped from the top four cryptocurrencies to the 11th position and there is a less likely chance for EOS to bounce back and regain the top 4 spots in the coming months.
Jump To A Section
- 1 What Is EOS?
- 2 What Is Cardano?
- 3 Detailed Comparison Of EOS And Cardano
- 4 Differences Of EOS And Cardano
- 5 FAQs About EOS VS Cardano
What Is EOS?
EOS stands for Electro-Optical System. This is a blockchain protocol based on the cryptocurrency EOS. It is also a decentralized operating system that eliminates transaction fees and also conducts millions of transactions per second. EOS was initially released on January 31, 2018, by Daniel Larimer and Brendan Blumer. EOS is a platform that is used to develop, host, and run business applications, or dApps. It supports core functionality that allows businesses and individuals to create blockchain-based applications which are quite similar to web-based applications. Developers showed interest in this platform because it provides secure access and authentication, permissions, data hosting, usage management, and communication between dApps and the Internet. In this platform, a developer-only needs to hold EOS coins, rather than spending them, to use all the resources available on the network to build and run DApps.
Pros Of EOS
1. EOS offers the developers the opportunity to develop full-fledged dApps
2. Developers can use the blockchain platform on their dApps which is powered by EOS
3. EOS offers dApp transactions which are more efficient than smart contracts
4. EOS offers free transactions
5. EOS uses a voting system on a governance structure model to remain as flexible as possible
6. EOS is a developer-friendly platform so developers can easily build dApps
7. Easy Hard Forks with fewer risks
8. EOS is ICO friendly, so anyone can host ICO on the platform
9. EOS is self-sustaining so it will continuously reward block producers for their work
Cons Of EOS
1. There is no guarantee that tokens will be honored
2. EOS has many competitors like NEO, Rootstock RSK, and RChain
3. There are chances of launch chaos when EOS launches
4. EOS is more centralized in its DPOS consensus protocol
What Is Cardano?
Cardano is a proof-of-stake public blockchain platform designed to run financial applications. It is an open-source and decentralized platform that can facilitate peer-to-peer transactions with its internal cryptocurrency, ADA. Cardano was founded by Ethereum co-founder Charles Hoskinson in 2015. This platform is built in layers and scientific philosophy therefore it is providing stable and flexible peer-to-peer transactions. This platform uses a new consensus system which is the first of its kind in the crypto space. The layers of Cardano offer easier maintenance and upgrades through soft forks which are very convenient for the developers. Recently, Cardano integrated the ShelleyTestnet into its algorithm which is likely to accelerate its full decentralization.
Pros Of Cardano
1. Cardano has a great development team and it ensures there are no weaknesses in the protocol
2. Cardano provides better transaction speed, reliability, and security
3. It offers a sophisticated smart contract system
4. Cardano uses mathematical verification methods for better security
5. Cardano is well supported both in academic and technological research
6. Cardano governance model is blockchain-based which is also convenient
Cons Of Cardano
1. Cardano is still in development so there will be risks of collapse
2. Due to the PoS protocol, Cardano is susceptible to 51% attack
Detailed Comparison Of EOS And Cardano
Now that we have some idea about EOS, Cardano and their advantages and disadvantages; let’s dig into the detailed comparison of these two cryptocurrencies.
Comparison In Terms Of Scalability
Scalability is a very important factor for every cryptocurrency. It has been 10 years since Blockchain technology was introduced and the issue of scalability still persists. New cryptocurrencies are trying to solve this major issue. For example, the EOS IO software is designed for both vertical and horizontal scaling of dApps. It means EOS doesn’t produce any Blockchain. It has developed a system that ensures the scalability of Blockchain by using the system.
Cardano is also trying to solve the scalability problem but they are doing it differently. Cardano tries to solve scalability by dividing it into three areas, Throughput, data scaling, and network bandwidth. Cardano users can complete the transaction using credit cards. For, data scaling, Cardano is trying to reduce the number of full nodes. Therefore, they are using technologies like pruning, compression, partitioning, and subscription. These technologies are helping to increase efficiency in data manipulation. For network bandwidth, Cardano uses RINA. RINA is a technology that is known for separating a network into sub-networks.
Comparison In Terms Of Transaction Cost
EOS platform doesn’t charge any fees for transactions. So, there are no transaction costs in EOS. However, when making a transaction with EOS you have to consider the RAM, CPU, and network bandwidth. You have to buy the RAB but CPU and network bandwidth require staking.
Cardano has transaction fees because people who run Cardano nodes spend their time, money, and skill. Therefore; they need compensation for their hard work. You can’t mine Cardano so the only way to income Cardano is the transaction fees.
Comparison In Terms Of Consensus
There are two types of consensus mechanisms available. They are proof of work and proof of stake. Different Blockchains use either one of these consensus mechanisms or both the mechanisms. Usually, EOS uses delegated proof of Stakes (dPoS) to select active members who sign valid blocks. This is the 2nd half of the consensus process. The first half of the EOS consensus process generates the first schedule of block producers.
On the other hand, Cardano solves some consensus-related issues through the Ouroboros, based on the PoS algorithm. This process is far more convenient than the process of EOS. The poS algorithm uses a fraction of the hashing power PoW algorithms.
Differences Of EOS And Cardano
|No transaction fees||Require transaction fees|
|EOS uses dPoS based consensus||Cardano uses Ouroboros, a PoS based consensus|
|EOS doesn’t have its own Blockchain||Cardano has their own Blockchain|
|EOS is Semi-centralized||Cardano is decentralized|
|Very fast, over 6000 transactions per second||Cardano transaction speed is slow compared to EOS|
|Initial release date: January 31, 2018||Initial release date: 27 September 2017|
|Programming language: C++||Programming language: Haskell|
FAQs About EOS VS Cardano
Which Platform Is Better? EOS Or Cardano?
There is no sure winner. Both EOS and Cardano have their advantages and disadvantages. So, it depends on personal choices.
Is Cardano The 3rd Generation Blockchain?
Yes, Cardano is a part of 3rd generation Blockchain. Other 3rd generation blockchain platforms are Polkadot and Cosmos.
Will EOS And Ethereum Ever Work Together?
There are some chances that EOS and Ethereum might work together. EOS brings flexibility and speed while Ethereum has excellent technology so they might be working as a team in the future.
Is Cardano Open Source?
Yes, Cardano is an open-source and patent-free platform. Cardano has been collaborating with different parties to make this platform more stable.
What Is The EOS Token?
The EOS token is the cryptocurrency of the EOS platform. The transaction cost of the EOS platform is zero; the developers only need to hold the EOS coins to use the resources of this network. IF a developer has an EOS coin then he/she can easily build and run dApps on the EOS platform. Moreover, if an EOS token holder is not using his tokens then he can also allocate or rent his bandwidth to other developers who may need it.
Last Updated on September 8, 2021 by Musa D